NMFTA Motor Carrier Liability Changes: What You Need to Know
National Motor Freight Traffic Association (NMFTA) recently changed the liability terms in the Uniform Straight Bill of Lading. Shippers now face increased difficulty in proving carrier negligence for loss or damage to freight. Learn about the implications of these changes and the potential impact on freight transportation.
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Presentation Transcript
NMFTA Motor Carrier Liability Changes Rick Schweitzer RIPA/IPANA Meeting October 26-28, 2016
What is NMFTA? National Motor Freight Traffic Association is a voluntary organization of motor carriers Serves as a standards setting organization for freight transportation Commodity Classification Standards Board determines classes for types of freight Previously acted as a rate bureau; had antitrust immunity until 2008 Also publishes Uniform Straight Bill of Lading
Bill of Lading Sets out terms of carriage between shipper and motor carrier (who pays, when must they pay, loss and damage liability) Acts as a contract of carriage and a receipt for tender of goods to carrier BOL terms may be supplemented by contracts of carriage negotiated between shipper and carrier
Changes to BOL Liability Terms For over 100 years, Carmack Amendment has controlled liability of motor carrier for loss or damage to freight To prove claim, shipper shows delivery of goods to carrier in good order and loss or damage at time of delivery; no need to prove carrier negligence Because carrier had goods in its possession, it must prove one of several affirmative defenses to avoid liability
BOL Changes Effective August 13, 2016, NMFTA changed liability terms Uniform Straight Bill of Lading Now shippers must prove carrier was negligent before recovering for loss or damage to freight Makes freight claims more difficult to prove, which is the point Why did NMFTA do this? Because they can
STB Proceeding Shippers groups brought proceeding to Surface Transportation Board to enjoin or suspend changes to BOL liability scheme STB denied the request on August 12; took comments until October 3 to determine if it has jurisdiction over the BOL and if so, what remedy to grant Doubtful that STB will claim jurisdiction and begin proceeding against NMFTA
What Next? If STB declines jurisdiction, some shipper(s) or association(s) might file an antitrust action against NMFTA and its members US Justice Department and NY State Attorney General previously refused to investigate Shippers should review their motor carrier contracts/BOL and decline these liability terms, if possible you do not have to accept this unilateral change in your rights
